French Senate Moves Forward with Bill Allowing Social Media Influencers to Endorse Cryptocurrency

The French Senate has taken a significant step by advancing a bill that would authorize social media influencers to endorse cryptocurrency. This progressive move comes as digital currencies continue to gain mainstream acceptance and demonstrates France’s willingness to adapt to the rapidly evolving world of finance and technology. By allowing social media influencers to promote cryptocurrency, the French government aims to foster innovation and growth within the nation’s burgeoning crypto ecosystem.

An amendment to an upcoming law has been adopted by the Economic Affairs Committee of the French Senate, allowing registered cryptocurrency companies to work with social media influencers for publicity and advertising. The revised language would make it possible for firms to hire influencers to promote their products, according to France’s Financial Markets Authority (AMF).

Maintaining Standards: Regulations Still Apply for Influencer Crypto Promotions

In March 2023, a couple of French social media influencers were sued by 102 plaintiffs for allegedly causing them to lose money through intentional cryptocurrency trading manipulation. This incident prompted the French Senate Committee on Economic Affairs to address the issue. Later, the Economics Committee of the French National Assembly voted in favor of a measure prohibiting social media influencers from promoting risky financial products, such as cryptocurrencies.

The French Senate's Committee on Economic Affairs approved a new amendment to legislation that would permit registered… – link in the next tweet #Altcoin #Bitcoin #Blockchain #Cryptomarket #Cryptonewstoday #FrenchSenate #Regulations pic.twitter.com/11JdyiC0aU

— Coinatory (@Coinatory) May 4, 2023

All Bitcoin businesses in France are required to register with the Financial Markets Authority (AMF), the main economic markets regulator. However, none of these businesses have yet received the necessary licensing to work with social media influencers for publicity and promotional purposes, despite this requirement. The proposed revision, which has received committee approval and will be discussed in the Senate’s full session next week, aims to allow Bitcoin businesses to utilize social media influencers for publicity.

If the proposed legislation is approved by the Economic Affairs Committee of the French Senate, registered Bitcoin businesses that adhere to specific requirements and are authorized by the AMF may hire influencers. With the help of this new rule, Bitcoin businesses will be able to benefit from the growing influencer marketing trend, increasing their visibility and engagement levels.

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It’s important to note, however, that with this new development comes a responsibility on the part of these cryptocurrency companies to ensure that any promotional content published through influencers is done so in a manner that is honest, transparent, and does not deceive customers. The AMF will also monitor the activities of these businesses and influencers to ensure that these regulations are being followed.

A Distinct Set of Regulations

Senators support the adoption of less stringent regulations regarding cryptocurrency advertising by social media influencers, as opposed to their counterparts in the National Assembly of Paris. In March 2023, the National Assembly passed a resolution that effectively banned such promotions. Meanwhile, the U.S. SEC is reconsidering its stance on formally defining digital assets.

The Securities and Exchange Commission was on the verge of defining “digital asset” but removed it in the final version of a rule, postponing a decision that could have helped normalize cryptocurrency’s status. By omitting what would have been its first official definition of “digital asset,” the SEC maintains ambiguity surrounding the classification of cryptocurrencies.